Nvidia Corporation reportedly agreed to acquire Hugging Face for $12.9 billion, according to The Information, marking one of the company’s largest acquisitions to date. The transaction would provide Nvidia with control over a major platform in the open-source artificial intelligence ecosystem that hosts millions of AI models and datasets used by developers for building and deploying open-source AI applications.
The strategic rationale behind the deal extends beyond portfolio diversification. By owning the Hugging Face platform, Nvidia could strengthen its presence at the software and developer layers of artificial intelligence, potentially increasing demand for its GPUs and CUDA ecosystem. The acquisition would also position the company to compete against closed-model leaders like OpenAI and Anthropic, which are developing proprietary AI chips that could reduce their reliance on Nvidia’s hardware.
The reported acquisition comes as Nvidia demonstrated exceptionally strong financial performance. The company reported fiscal second-quarter 2027 results on Aug. 26, with revenue reaching a record $96.2 billion, up 106% year-over-year, and exceeding prior guidance of $91 billion plus or minus 2%. Net income on a non-GAAP basis climbed 118% to $54 billion, while adjusted earnings per share jumped 120% to $2.22. The Data Center segment generated $89 billion in revenue, up 117% year-over-year and representing the majority of total company revenue.
For the following quarter, Nvidia issued an even stronger outlook, expecting revenue of $108 billion plus or minus 2%, with GAAP and non-GAAP gross margins anticipated at approximately 74% plus or minus 50 basis points. Stock price momentum reflected investor enthusiasm, with shares closing at $227.98 on Aug. 27 and jumping 8.7% in a single session. The stock reached 16.7% year-to-date gains and was trading near its 52-week high of $236.54. Wall Street analysts responded positively to the results, with Bernstein raising its price target to $400 from $315, while JPMorgan raised its target to $320 from $280.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI